Two and one-half years ago, Nova Scotia Power sold an issue of 25-year, 8% coupon bonds. If

Question:

Two and one-half years ago, Nova Scotia Power sold an issue of 25-year, 8% bonds. If the current semiannually compounded return required in the bond market is 6.9%, calculate the percent capital gain or loss on the bonds over the entire 2 ½ -year holding period.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...